PNM Files 2014 Integrated Resource Plan

ALBUQUERQUE, N.M.--(BUSINESS WIRE)--PNM Resources’ (NYSE: PNM) New Mexico Utility, PNM, today filed its 2014
Integrated Resource Plan with the New Mexico Public Regulation
Commission. The Integrated Resource Plan outlines how the company plans
to provide a reliable, cost-effective, and environmentally responsible
power supply in the future. It has a 20-year planning horizon and
includes specific recommendations for the next four years. In addition,
PNM’s resource plan is consistent with the company’s 5-year capital
investment plan.

To create the plan, PNM analyzed thousands of potential energy resource
combinations to identify the best possible mix of generation sources.
PNM considered future changes in the cost and reliability of each
resource mix over time. Based on the results of the analysis, the
company expects to add significant renewable energy resources to its
power portfolio in the coming years.

Since the previous Integrated Resource Plan filing in 2011, PNM has made
a $269 million commitment to solar energy, will add more wind generation
in 2015, is using energy from the state’s first geothermal plant and
worked with the EPA and the State of New Mexico to begin taking steps
toward closing down two coal units at the San Juan Generating Station.
These initiatives are consistent with PNM’s focus on maintaining a
balanced fuels portfolio.

While it is unclear exactly how the EPA’s newly proposed carbon rules
will affect PNM’s power sources in the future, the company considered
carbon regulation in the modeling. PNM will be fully engaged in efforts
to help New Mexico comply with these rules once they are finalized.

Highlights of the specific four-year elements of the PNM Integrated
Resource Plan include:

Close two units of the coal-fired San Juan Generating Station by 2018
to meet federal haze requirements, reduce greenhouse gas emissions and
cut water usage. The company plans to replace the retired power by
adding more solar and natural gas facilities and using energy from an
existing nuclear plant.

Participate in developing New Mexico’s statewide plan to comply with
newly proposed federal rules to reduce carbon emissions at existing
power plants.

Create new energy-saving programs to meet the 2020 requirement of 658
gigawatt-hours saved. PNM is on track to meet a requirement of 411
gigawatt-hours of energy savings this year.

Monitor and evaluate emerging technologies, particularly battery
storage, for use in the future.

PNM’s 2014-2033 Integrated Resource Plan is filed with the N.M. Public
Regulation Commission and posted at www.PNM.com/irp.

Background:

PNM Resources (NYSE: PNM) is an energy holding company based in
Albuquerque, N.M., with 2013 consolidated operating revenues of $1.4
billion. Through its regulated utilities, PNM and TNMP, PNM Resources
has approximately 2,572 megawatts of generation capacity and serves
electricity to more than 746,000 homes and businesses in New Mexico and
Texas. For more information, visit the company’s website at www.PNMResources.com.

Statements made in this news release that relate to future events or PNM
Resources’ (“PNMR”) or Public Service Company of New Mexico’s (“PNM”)
(collectively, the “Company”) expectations, projections, estimates,
intentions, goals, targets, and strategies are made pursuant to the
Private Securities Litigation Reform Act of 1995. Readers are cautioned
that all forward-looking statements are based upon current expectations
and estimates. PNMR and PNM assume no obligation to update this
information. Because actual results may differ materially from those
expressed or implied by these forward-looking statements, PNMR and PNM
caution readers not to place undue reliance on these statements. PNMR's
and PNM's business, financial condition, cash flow, and operating
results are influenced by many factors, which are often beyond their
control, that can cause actual results to differ from those expressed or
implied by the forward-looking statements. For a discussion of risk
factors and other important factors affecting forward-looking
statements, please see the Company’s Form 10-K and Form 10-Q filings
with the Securities and Exchange Commission, which factors are
specifically incorporated by reference herein.